AuthorTopic: Cryptocurrencies F.A.Q. (Bitcoin) (Read 695 times)

The most simple way to explain it would be to ask you, why do you believe in your local currency? You would more than likely reply because you can spend it, pay bills etc. Then I would ask you, why does the shop owner or the utility company accept your offered currency as payment? You might somewhat ponder on that answer, so let me answer that for you. Because you both believe in your local currency and that you are both able to exchange value with each other. That be; exchanging balances in your bank account, credit card or tangible notes (hard cash). It's all the same principle just using different methods.

This is exactly the same with cryptocurrencies, you're able to exchange value with another party who believe they can in turn exchange the received value for goods or services, only you are using a different method, something called a blockchain. This blockchain resides on the internet, connecting each and every computer together who is using it. This is how you exchange value, by accessing the blockchain with a program you can install on your pc/tablet or phone and its called a 'Wallet'.

(This is a somewhat simple explanation; the more precise answer would be a cryptographically secured decentralized ledger system, but lets keep it simple for now.)

In this wallet you will keep your cryptocurrency which represents value. These cryptocurrencies you may have purchased, been giving or earned and are cryptographically secured in there using two keys called Private and Public. The only way those cryptocurrencies can be removed from your wallet is using those keys (think of them as your password and username) and so its very important you do no lose them as you cannot access your cryptocurrencies without them. On a side note; you've more than likely been using cryptography for years without knowing, every time you go to a website that displays a SLL sign or has https in your browser address bar is using cryptography to communicate with you.

Ok, by this point you understand about a wallet, you may well ask how do you purchase cryptocurrencies and receive them into your wallet. There are lots of different methods to achieve this, one of the easiest is to open an account with a Cryptocurrency Exchange (think of them as a bank) and exchange some of your local currency for some cryptocurrency of your choice, lets say Bitcoin as a example.

So, I now have some Bitcoin, how do I send it to someone?

Easy, ask them for their Bitcoin addresses, which is really their Public Key (similar to sending money to someone with a PayPal account and using their email address) . Think of this Public Key as a lock and the only person who can unlock it is the person with the key (Private key). Hence, cryptographically securing it, easy when you think about it.

(Did you know that every email address on the internet is unique?, that is why PayPal use email addresses to send money.)

Another very easy way is to download and install a wallet (app) on your phone, then if a website shows a QR code simply scan the code displayed on your pc monitor into your phone and hey presto its all done automatically for you! After that you then will need wait for the blockchain to confirm the transaction. This can be the frustrating part as you may need to wait for 10-20 minutes or more depending on the network. But if you use another cryptocurrencies this can take seconds.

Ok, great I understand, but how do I convert back my cryptocurrency back into my local currency?

Easy, just sell it back to the exchange you purchase it from, or any other exchange that gives you a good exchange rate.

I just cannot be bothered with all this crypto stuff, do you accept credit cards?

The reason why we do not accept credit cards directly on the site is the high fees the card companies charge. If we accepted credit cards, then we would have to pass the charges onto the site users and we don't really want to do that. If you really need to use a credit card you can use the services of one of our resellers to purchase an upgrade voucher, but please understand we have no control over what our resellers charge for using their services.

We have assembled together some of best guides and links to help you further understand. Whilst we don't have any affiliation with any of them and cannot guarantee their accuracy, can say we have tested and used some of the resources listed in the links.

As you can see, phone wallets offer a very convenient way to carry your Bitcoin with you. However, due to the risk of theft or losing your phone, it is very important to always remember the following:

Always set a pin code protection for your wallet if possible Never store large amounts of Bitcoin on your mobile wallet Write down the 12-24 word seed you get when you set up your wallet and keep in a safe place.

https://localbitcoins.netUse the quick search and select how much Bitcoin or any other cryptocurrency you want to purchase and select the payment method.Payment methods inc: Cash depost, Paypal, Bank transfer, Paym and pingit